TKR vs. IEX, SNA, GGG, PNR, NDSN, SWK, LECO, ITT, WWD, and DCI
Should you be buying Timken stock or one of its competitors? The main competitors of Timken include IDEX (IEX), Snap-on (SNA), Graco (GGG), Pentair (PNR), Nordson (NDSN), Stanley Black & Decker (SWK), Lincoln Electric (LECO), ITT (ITT), Woodward (WWD), and Donaldson (DCI). These companies are all part of the "industrial machinery" industry.
IDEX (NYSE:IEX) and Timken (NYSE:TKR) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, community ranking, dividends, analyst recommendations, institutional ownership and media sentiment.
In the previous week, Timken had 9 more articles in the media than IDEX. MarketBeat recorded 15 mentions for Timken and 6 mentions for IDEX. Timken's average media sentiment score of 1.18 beat IDEX's score of 0.77 indicating that IDEX is being referred to more favorably in the media.
IDEX pays an annual dividend of $2.76 per share and has a dividend yield of 1.3%. Timken pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. IDEX pays out 36.3% of its earnings in the form of a dividend. Timken pays out 25.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IDEX has raised its dividend for 14 consecutive years and Timken has raised its dividend for 11 consecutive years. Timken is clearly the better dividend stock, given its higher yield and lower payout ratio.
98.0% of IDEX shares are held by institutional investors. Comparatively, 89.1% of Timken shares are held by institutional investors. 0.5% of IDEX shares are held by company insiders. Comparatively, 8.7% of Timken shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
IDEX has higher earnings, but lower revenue than Timken. Timken is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.
IDEX has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Timken has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
IDEX received 59 more outperform votes than Timken when rated by MarketBeat users. However, 62.79% of users gave Timken an outperform vote while only 58.40% of users gave IDEX an outperform vote.
IDEX has a net margin of 17.89% compared to IDEX's net margin of 7.99%. IDEX's return on equity of 17.98% beat Timken's return on equity.
IDEX presently has a consensus target price of $250.71, suggesting a potential upside of 20.94%. Timken has a consensus target price of $87.91, suggesting a potential upside of 4.62%. Given Timken's stronger consensus rating and higher possible upside, research analysts clearly believe IDEX is more favorable than Timken.
Summary
IDEX beats Timken on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TKR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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